Monday, February 26, 2018

The Bank for International Settlements: Bitcoin is “A Combination of a Bubble, a Ponzi Scheme and an Environmental Disaster”.

Central banks must clamp down on bitcoin and other cryptocurrencies to stop them “piggybacking” on mainstream institutions and becoming a “threat to financial stability”, the head of the Bank for International Settlements warns.

Agustín Carstens, general manager of the BIS condemned bitcoin as “a combination of a bubble, a Ponzi scheme and an environmental disaster,” reports the Financial Times.

“To date, many judge that, given cryptocurrencies’ small size and limited interconnectedness, concerns about them do not rise to a systemic level,” said Carstens in a speech delivered earlier this month at Goethe University in Germany.

“But if authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability.”

Pointing out that the “mining” process to create new bitcoins uses the same amount of electricity as Singapore each day, Carstens said “the current fascination with these cryptocurrencies seems to have more to do with speculative mania than any use as a form of electronic payment, except for illegal activities."

Bitcoin fanboys are delusional if they believe that governments won't crack down on Bitcoin and other cryptocurrencies.

4 comments:

These payment systems are also incredibly useful to people who have been shut out of the banking system for having unpopular opinions that go against the interests of the rootless cosmopolitan elites who run the media and banking industries.